ITG Launches POSIT® Stock-Crossing System In Hong Kong

Hong Kong & New York, June 3, 2002 – Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology-based equity trading services, today announced that its wholly owned subsidiary, ITG Hong Kong Ltd, will launch the POSIT stock crossing system on June 5, 2002. POSIT is the world's largest system for electronic matching of equities. POSIT's confidentiality and mid-point pricing features saved U.S. clients an estimated $1.3 billion in 2001 when it matched a record 9.3 billion shares.

“The anonymity and pricing mechanisms of POSIT will substantially reduce trading costs for institutional investors trading Hong Kong equities.” stated Asad Sultan, CEO of ITG Hong Kong. “ITG Hong Kong is a key component to our global expansion program,” said Raymond L. Killian, Jr., Chairman, President and Chief Executive Officer of ITG. “The success and growth of our operations in Europe, Canada and Australia have demonstrated that the products and services we provide are in great demand globally and provide value to the clients we serve.”

POSIT Hong Kong offers three daily matches including a pre-market VWAP match and two intra-day matches at 11 a.m. and 3 p.m. Hong Kong time. Stocks included in the matches consist of the thirty-three constituent members of the Hang Seng Index for the pre-market match and all HKSE-quoted securities for the intra-day matches. The pre-market opening session will match shares based on the full day VWAP (Volume Weighted Average Price). The intra-day sessions will match shares based on the midpoint of the bid and offer price at the time of the matches.

POSIT Hong Kong and the POSIT service mark will be licensed from the POSIT Joint Venture, a joint venture between a subsidiary of ITG and a subsidiary of Barra, Inc. (Nasdaq: BARZ).

In addition to POSIT, ITG Hong Kong will offer several other products and services. The Electronic Trading Desk, a disciplined, step-by-step process for the pursuit of best execution, will combine ITG's proprietary, advanced technologies with hands-on trading expertise to cover the pan-Asian equity markets. TCA™ (Transaction Cost Analysis), the world's most comprehensive post-trade analysis tool, provides fully customizable analyses of trading costs on a same day basis. ITG ACE™ (Agency Cost Estimator) forecasts market impact and opportunity costs, and recommends an optimal trading strategy.

ITG Hong Kong was established in August 2001 and is regulated by the Securities and Futures Commission of Hong Kong as a dealer and a provider of Alternative Trading Services. The company is also a member of the Hong Kong Stock Exchange. Customers will access the POSIT system through a web browser over the internet or through various customized interfaces.

About ITG

ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, Hong Kong, London, Melbourne, Sydney, Tel Aviv and Toronto. As a leading provider of technology-based equity-trading services and transaction research to institutional investors and brokers, ITG services help clients to access liquidity, execute trades more efficiently, and make better trading decisions. ITG generates superior trading results for its clients through three lines of business. POSIT®, the world's largest equity matching system, allows clients to trade confidentially. The Electronic Trading Desk is recognized as one of the leading program trading operations in the U.S. ITG's leading-edge Client Site products allow users to implement their own trading strategies by providing direct electronic access to most sources of market liquidity. For additional information, visit

In addition to historical information, this press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include the Company's ability to achieve expected future levels of sales; the actions of both current and potential new competitors; rapid changes in technology; financial market volatility; general economic conditions, internationally or nationally; evolving industry regulation; cash flows into or redemption from equity funds; effects of inflation; customer trading patterns; and new products and services. These and other risks are described in greater detail in the Company's filings with the Securities and Exchange Commission including those on forms 10-K and 10-Q.

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